HR Insights • ValuedHR Blog

What Every Small Business Owner Needs to Know About FMLA

By Michelle Mendez  •  May 13, 2026  •  5 min read
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FMLA — the Family and Medical Leave Act — is one of the most misunderstood employment laws in small business. Some owners believe it applies to them when it doesn't. Others believe it doesn't apply to them when it does. And even employers who understand the basics often get the implementation wrong in ways that create liability.

Who FMLA Applies To

FMLA applies to employers with 50 or more employees within 75 miles of a worksite. If you have fewer than 50 employees, federal FMLA does not apply to your business. However: several states have their own family and medical leave laws with lower employer thresholds — including California, New Jersey, Oregon, Washington, Massachusetts, and others. In those states, you may have leave obligations regardless of size.

What FMLA Requires (For Covered Employers)

Eligible employees (those with 12 months of employment and 1,250 hours worked) are entitled to up to 12 weeks of unpaid, job-protected leave per year for qualifying reasons: birth or adoption of a child, serious health condition of the employee or a close family member, or qualifying military exigency.

Job-protected means the employee must be restored to their same or equivalent position when they return. Benefits must continue during the leave on the same terms as if the employee were actively working. You cannot count FMLA leave against an employee in attendance policies or use it as a negative factor in any employment decision.

Common Mistakes

The most common FMLA mistake is failing to recognize when FMLA applies and failing to notify the employee of their rights. When an employee communicates a need for leave that might qualify, you are responsible for informing them of their FMLA eligibility — they do not need to invoke the law by name.

Even if FMLA doesn't apply to your business, you likely have state leave obligations and ADA accommodation considerations that overlap. Understanding the full leave landscape for your state is a core HR compliance requirement.

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